AS Paper 2, June 2016The UK Economy – Performance and Policies
AS Paper 2, June 2016, Q5(b)
Which one of the following is most likely to cause a rightward shift in the aggregate supply curve?
Multiple choice1 mark
Context
In 2014 the Bank of England estimated the marginal propensity to consume of UK consumers to be 0.5. In 2014 the Chancellor of the Exchequer announced a £15 billion investment programme into UK road infrastructure.
AA decrease in real output
BA rise in price level
CA fall in price level
DAn increase in productivity